Free tool · Updated October 2026
SHIF Calculator Kenya: 2.75% Social Health Insurance Contribution
Work out your Social Health Insurance Fund (SHIF) deduction, which replaced NHIF in October 2024.
Salaried workers pay 2.75% of gross monthly pay to SHIF, run by the Social Health Authority (SHA). Unlike the old NHIF bands, there is no upper cap, so higher earners pay more. The good news is that SHIF is fully deductible from taxable income, which lowers your PAYE.
How SHIF is calculated
SHIF = 2.75% × gross monthly salary, with a minimum of KSh 300. For example, KSh 40,000 gross gives KSh 1,100 and KSh 250,000 gives KSh 6,875. Because SHIF is taken off before PAYE, it also reduces your tax: at the 30% band, every KSh 1,000 of SHIF saves KSh 300 of PAYE.
Rates used and sources
| Item | Rate | Effective |
|---|---|---|
| PAYE bands (monthly) | 10% on first 24,000; 25% on next 8,333; 30% on next 467,667; 32.5% on next 300,000; 35% above 800,000 | 1 July 2023 (Finance Act 2023), unchanged by Finance Act 2025 and 2026 |
| Personal relief | KSh 2,400 per month | Since 1 January 2018 |
| Insurance relief | 15% of premiums, max KSh 5,000 per month | Income Tax Act s.31 |
| NSSF (Year 4) | 6% employee + 6% employer; Lower Earnings Limit KSh 9,000, Upper Earnings Limit KSh 108,000 (max KSh 6,480 employee) | 1 February 2026 (NSSF Act, Third Schedule) |
| SHIF | 2.75% of gross pay, minimum KSh 300, no cap; fully tax-deductible | 1 October 2024; deductible from 27 December 2024 |
| Affordable Housing Levy | 1.5% employee + 1.5% employer; fully tax-deductible | Affordable Housing Act 2024; deductible from 27 December 2024 |
Sources: KRA – Pay As You Earn; NSSF Notice to Employers – Year 4 (2026) rates; KPMG Kenya tax alert on NSSF Phase 4; PKF Kenya 2025/26 Quick Tax Guide (SHIF, AHL and insurance relief). Rates checked October 2026. This tool gives estimates; your employer’s payroll is the final word.
Frequently asked questions
How much is SHIF per month?
2.75% of your gross monthly salary, with a minimum of KSh 300 and no maximum.
When did SHIF replace NHIF?
SHIF contributions started on 1 October 2024 under the Social Health Insurance Act, 2023.
Is SHIF deducted before tax?
Yes. Since 27 December 2024 SHIF is an allowable deduction, so PAYE is worked out after SHIF is removed.
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